Bulgaria’s energy regulator cuts natural gas price by 47%

Bulgaria’s Energy and Water Regulatory Commission approved a reduction in the price of natural gas by 47% to BGN 123.01/mWh. The decrease comes into force today, November 1.

The new reduction will be immediately reflected in the bills of consumers who use natural gas for heating. Despite the reduction, the price will remain high compared to last year, when natural gas was by about 44% cheaper.

Because of the expected decrease in gas prices, there will be no new increase in heating and hot water prices from January. However, prices have already been increased since July by an average of 30%, and by 40% in Sofia.

There are three main reasons for the fall in fuel prices - a general drop on the European markets, the launch of the new Bulgarian-Greek gas link, which enables the country to buy cheaper gas from Azerbaijan, and the negotiated more favourable prices for the supply of liquefied and piped gas.

From July to September, the price of natural gas went up by nearly 150% and reached a record high of more than BGN 350 per megawatt-hour. Now the level is normalizing, bringing the price closer to the level of January 2022. Compared to January 2021, with the latest reduction, the increase is five times.